East Texas data center withdraws after falling short of the Governor’s directives

East Texas data center withdraws after falling short of the Governor’s directives

News ClipNews Channel 6 | Wichita Falls, TX·Henderson County, TX·7/23/2026

A proposed data center by Diode Ventures in Henderson County, Texas, has been withdrawn after failing to meet Governor Greg Abbott's directives and community expectations. The directives emphasize protecting natural resources, the power grid, and residents' quality of life. The Governor's office plans to seek legislation to codify these expectations for future data center developments.

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Gov: Office of Governor Greg Abbott, Public Utilities Commission, Electric Reliability Council Of Texas

Governor Greg Abbott's office announced that a proposed data center project by Kansas-based developer Diode Ventures near Cedar Creek Lake in Henderson County, Texas, has been withdrawn. The decision comes after the project was determined to have not met directives issued by Governor Abbott on June 10 to the Public Utilities Commission (PUC) and the Electric Reliability Council Of Texas (ERCOT), nor did it align with community expectations.

Governor Abbott emphasized that data centers operating in Texas must meet clear standards, prioritizing communities, protecting natural resources and the power grid, and respecting the quality of life of residents. He praised Diode Ventures for their decision and indicated that similar actions would be expected from other developments that do not meet these criteria. The Governor's office also stated its intention to seek legislation to codify these expectations, along with additional requirements, into state law.